PACT is New York City’s implementation of the Obama administration's Rental Assistance Demonstration (RAD) which protects and strengthens public housing through public-private partnerships and strong tenant rights.

Following extensive resident engagement, 1,700 apartments will receive extensive, long-overdue repairs, such as elevator replacements, new boiler and heating systems and roof replacements.

NEW YORK–– Today, the New York City Housing Authority (NYCHA) announced an expansion of the successful Permanent Affordability Commitment Together (PACT) program which will raise $300 million for extensive capital repairs and quality of life improvements for 1,700 apartments. PACT is New York City’s implementation of the Obama administration's Rental Assistance Demonstration (RAD), and includes a collaboration between the Authority, NYCHA residents, and community and housing advocates. PACT is a key part of Next Generation NYCHA, the Authority’s long term strategic plan to create financial stability and improve residents’ lives. PACT generates a sustainable funding source for extensive repairs while guaranteeing permanent affordability and protecting tenant rights.

NYCHA Chair and CEO Shola Olatoye said, “This PACT creates an opportunity for NYCHA to raise over $300 million and improve the lives of thousands of our residents almost overnight. Due to decades of federal disinvestment, NYCHA faces serious financial difficulties and finding creative solutions - such as public-private partnerships - allows us to make sure our residents have a better quality of life as we move towards our NextGen NYCHA goals of creating safe, clean and connected public housing.”

Just last month, NYCHA announced the closing of the first RAD agreement which brought $325 million to the Rockaways’ Ocean Bay (Bayside) development, which was badly affected during Hurricane Sandy. Now, HUD has authorized NYCHA to bring an additional 1,700 units into the PACT program and can begin the process to engage residents and raise significant financial resources for desperately needed repairs through a public-private partnership.

The developments in this PACT include some of NYCHA’s most challenging buildings and the Authority had no way to address their needs with the limited capital funding received and over $17 billion in capital needs throughout the portfolio. Through the RAD program, residents in these developments will see their buildings transformed and fully rehabbed with over $300 million being invested back into these buildings. Buildings that have had chronic heat problems and gas outages will be addressed, complete repairs to interiors and common spaces will be provided and elevators and building security systems including entry systems and security cameras will be upgraded.

New York City Council Speaker Melissa Mark-Viverito said, “As President Obama’s term comes to an end this week, we are once again reminded of the steps his Administration has made to ensure that as many Americans as possible have the opportunity to live with dignity. I was thrilled to hear that HUD’s Rental Assistance Demonstration (RAD) program continues to build on its efforts to help New Yorkers—this time by bringing investments to 1,200 housing units in my district. For many low-income families in the Bronx this means a significant improvement in their quality of life—and for that, I commend the Department.”

The approval follows NYCHA’s application in July of 2016 for 5,200 units. The remaining units are waitlisted due to a nationwide federal cap which limits the amount NYCHA, or any Public Housing Authority, can be approved for at one time.

Under the PACT program, NYCHA will shift the funding source supporting these buildings from Section 9 (public housing) to project-based Section 8 allowing NYCHA, through partnerships with private and/or non-profit developers, to complete major repairs while keeping the units permanently affordable and maintaining the same public housing rights.

Council Member Ritchie Torres, Chair of the Committee on Public Housing, said, “NYCHA is at a crossroads and it must either adapt to the changing federal landscape and funding streams, or risk losing buildings to decay. The Rental Assistance Demonstration Program provides much-needed investments while allowing NYCHA to retain ownership of land and buildings. As federal dollars going to NYCHA continue to decline, RAD is the best opportunity to save public housing for future generations."

The PACT process centers around community engagement, which will begin immediately now that the additional units have been authorized. NYCHA will hold regular meetings with residents to make sure that not only are their questions answered, but that they have meaningful input in the process. Resident engagement will continue from initial notification of HUD approval through the entire PACT process, including developer selection, conversion and construction.

Unlike the first PACT agreement at Ocean Bay Houses, the developments in the expansion are scattered throughout the Bronx and Brooklyn. The majority of the 1,700 units are atypical buildings in the NYCHA portfolio and are mostly scattered site developments with low density properties, meaning they are low rise buildings (less than 7 stories) and are spread through 17 developments and 59 individual buildings.

Victor Bach, Senior Housing Policy Analyst at the Community Service Society, added: "There is a long list of housing authorities lined up for limited HUD RAD approvals. To NYCHA's credit, it has gained approval for 1,700 units in 17 developments that can now look forward to the rapid restoration of decent living conditions."

The Ocean Bay Development provides a roadmap for successful public-private partnerships and demonstrates the ability of PACT to generate funding to keep families in their homes and improve residents’ quality of life. NYCHA will retain ownership interest of the properties, ensuring the units stay permanently affordable and guaranteeing the developments can never be privatized. The sites in the second authorization will follow a similar engagement strategy and residents will receive the same benefits and rights.

Judi Kende, Vice President and New York Market Leader for Enterprise Community Partners, Inc. said, “NYCHA provides stable housing to hundreds of thousands of New Yorkers, making it an essential part of the City’s affordable housing infrastructure. But years of funding cuts from all levels of government have put this incredible resource in a dire financial situation. This expansion of NYCHA’s preservation plan through the creative use of public-private partnerships will change its financial trajectory, bring much-needed renovations, and improve the quality of life for thousands of residents, all while maintaining affordability and resident rights.”